According to an analysis of state court data by Rocky Mountain PBS and ProPublica, HOAs in Colorado filed more than 2,400 foreclosure cases from January 2018 to February 2022.Colorado House Bill 22-1137 ìHomeowners Association Board Accountability and Transparencyî was signed into law June 9. Among other things, the bill limits HOAs from foreclosing against homeowners solely based on accumulating unpaid fines for violating HOA covenants.The bill requires a majority board approval prior to referring delinquent accounts to a collection agency or attorney, and several notifications to the homeowners in their native language are required before the collection process begins. It introduces limitations on the amounts of fines and fees that can be charged to the residents. For violations that do not threaten public safety or health and are not remedied within 30 days as allowed by the law, the fines cannot exceed $500 per violation. The HOA must attempt to set up a payment plan before initiating a foreclosure for overdue assessments. Interest on unpaid assessments, fines or fees is limited to 8% down, from 21%. In addition, the bill creates a private right of action for unit owners and exposes the HOAs to a possibility of a civil suit for violations of any foreclosure laws for a period of up to five years.Colorado does not regulate HOAs. Although homeowner associations are required to register with the Division of Real Estate, a division of the Department of Regulatory Agencies, there are many that do not comply. The Division of Real Estate established ìThe HOA Information and Resource Centerî in 2010 to compile information from Homeowner Associations through registrations as well as from inquiries and complaints received by members of HOAs and others. The center is also responsible for providing information and resources to unit owners (ìhomeownersî), Common Interest Community boards, declarants, and other interested parties about the rights and responsibilities set forth in the Colorado Common Interest Ownership Act and other applicable state law.Other HOA laws passed in 2022 include House Bill 22-1139 ó Homeownersí Associations Cannot Regulate Use of Public Rights-of-Way. This bill prohibits any HOA from restricting the use of a public right-of-way that is in accordance with applicable laws and regulations. House Bill 22-1040 ó Regulation of Use of Common Elements ó must preserve and protect unit ownersí ability to use and enjoy the common elements under such HOAís control, and cannot unreasonably restrict access to or enjoyment of such common elements. Finally, Senate Bill 22-059 ó Homeownersí Association Voting Proxy Limitations ó clarifies that the 11-month duration of a proxy is the maximum duration, but the proxy can indicate an earlier termination date.Sources:https://www.nolo.com/legal-updates/colorado-passes-hoa-foreclosure-reform-law.htmlhttps://www.propublica.org/article/they-faced-foreclosure-not-from-their-mortgage-lender-but-from-their-hoahttps://www.faegredrinker.com/en/insights/publications/2022/6/coming-to-the-neighborhood-colorado-passes-new-hoa-lawshttps://dre.colorado.gov/about-the-hoa-center#www
